Beamr video compression achieves up to 50% improvement for AVs
Investing.com -- Wise Plc (LON:WISEa) on Tuesday reported a 28% year-on-year increase in cross-border volume in the fourth quarter of its 2025 financial year, with volumes reaching £39.1 billion.
The company also recorded a 15% rise in underlying income on a constant currency basis, totalling £350.4 million for the quarter. The number of active customers rose to 9.3 million in the period.
Despite the volume growth, Wise’s cross-border take rate declined by 14 basis points compared with the same quarter a year earlier, falling to 0.53% from 0.67%.
“Broadly in-line with preliminary results likely means a non-event from this trading update, although the continuous traction in high VPC cohort is encouraging after last year’s price changes towards that group,” said analysts at Jefferies in a note.
The company attributed this to increased usage from larger customers, which typically carry lower margins. The proportion of instant transfers rose to 65%, up from 62% a year ago.
“No comments were given on current trading but given historically geo-political events triggered a spike in FX transactions, we expect similar to have occurred over last weeks,” Jefferies added.
For the full year ended March 2025, Wise reported a 23% increase in cross-border volume to £145.2 billion. Active customers grew by 21% to 15.6 million.
On a reported basis, full-year underlying income reached £1.36 billion, reflecting the impact of foreign exchange headwinds.
The preliminary underlying profit-before-tax margin for the year was approximately 20%, placing it at the upper end of the company’s targeted 13 to 16% range.
Wise expanded its services and geographic presence during the quarter. In Latin America, the company launched a partnership with Itaú Unibanco to enable instant cross-border payments via the bank’s app. In Hong Kong, Wise introduced its business account offering.
The company also expanded operations in India and launched its Interest feature in Australia, enabling customers to earn returns on funds backed by government-guaranteed assets.
“We ended the financial year taking Wise to even more people and businesses around the world,” said Kristo Käärmann, co-founder and chief executive officer.
“It’s exciting to now be enabling money flows with Mexico... We also announced the opening of a new hub in India, building on recent office expansions in London, Tallinn and Singapore”.